Treasurer Grossman Celebrates National Small Business Week
Highlights The Statewide Impact of Treasury’s Small Business Banking Partnership
Treasurer Steven Grossman today kicked off National Small Business Week by giving an update on the statewide impact of Treasury’s Small Business Banking Partnership.
“All across Massachusetts we are seeing successful businesses grow and flourish as a result of the Small Business Banking Partnership,” said Treasurer Grossman. “National Small Business Week is a great opportunity to highlight the hard working women and men, particularly in our Gateway Communities, who are starting and building small businesses, while creating jobs and economic prosperity.”
The Small Business Banking Partnership, which was launched in May of 2011, is an initiative spearheaded by Treasurer Grossman. The Partnership moves Treasury cash reserve funds typically held by large national and international financial institutions and deposits them in amounts of up to $10 million in Massachusetts community banks. In exchange for the infusion of new deposits, the banks sign a Memorandum of Understanding (MOU) signaling their intent to enhance their loan portfolios to small credit-worthy Massachusetts businesses, with a focus on women-owned, minority-owned and veteran-owned businesses.
“I’ve had the opportunity to travel the all over the state and visit business owners who are the recipients of loans leveraged through the Partnership,” said Treasurer Grossman. “The stories are inspiring. In almost all cases these loans create jobs.”
To date, Treasury has deposited $317 million in 52 community banks statewide. These banks have make over 4,700 new small business loans totaling more than $705 million, many of which are directly attributable to the Small Business Banking Partnership.
“As the former CEO of a fourth generation family business, I understand the importance of access to capital,” said Treasurer Grossman. “I’m proud that we’ve played a major role in providing Massachusetts small businesses with opportunities for growth.”
All deposits that the Treasury makes in these local community banks are protected through either insurance or collateral, and the interest rate on the money is comparable to what the Commonwealth receives at out-of-state financial institutions.
An updated list of banks participating in the Partnership is attached .